What is Bitcoin?

Bitcoin is scarce, digital money that operates without a central authority like a bank or government. It was described in a 2008 whitepaper by the still-unknown person or group Satoshi Nakamoto and launched in 2009. The main goal: to send value directly from person to person—globally, openly, and without a middleman.

  • Limited to 21 Million BTC: There will never be more. This absolute scarcity is its strongest feature.
  • Decentralized: Thousands of computers (nodes) worldwide secure the network. No one can control or shut it down.
  • Transparent: Every single transaction is publicly and permanently recorded in a digital ledger, the blockchain.

How Does Bitcoin Work - Simplified

Imagine it as a global, digital ledger that everyone can access but no one can forge:

  1. All users send their transactions to the network.
  2. So-called miners collect these transactions and bundle them into blocks.
  3. To secure a block, miners solve complex mathematical puzzles (Proof-of-Work). This requires immense computing power and energy, making the network extremely secure.
  4. The first miner to solve the puzzle adds the new block to the chain and receives newly created Bitcoin as a reward (the block reward).

This process repeats roughly every 10 minutes, making the system incredibly robust and predictable. The issuance of new bitcoins is **halved approximately every 4 years** (the famous halving), making Bitcoin scarcer over time.

Why is This Important?

  • Protection Against Inflation: Unlike traditional currencies, the supply of Bitcoin cannot be arbitrarily increased. This makes it a potential hedge against currency devaluation—many call it "digital gold."
  • Censorship Resistance: No one can forbid you from sending a transaction or freeze your funds. You have sole control.
  • Borderless Payments: You can send any amount of value, from one euro to a million, to anywhere in the world in minutes—24/7, with no bank holidays.

Secure Storage: Hot vs. Cold Wallet

Your Bitcoin is stored in a digital wallet. There are two main types:

Hot Wallet (App/Browser)

Convenient for small amounts and quick payments. However, they are always connected to the internet and thus more vulnerable to attacks.

Cold Wallet (Hardware)

The safest choice for larger amounts and long-term holding. Your private keys are stored offline and protected from hackers.

Learn everything about secure storage in our Wallet Security Guide.

Stress-Free Investing with DCA (Savings Plan)

Trying to "time" the market (buying at the lowest point and selling at the highest) almost always fails. A much more successful and stress-free method is Dollar-Cost Averaging (DCA), also known as a savings plan. You automatically buy a fixed amount of Bitcoin (e.g., $50) at regular intervals (e.g., every month). This smooths out price fluctuations and allows you to benefit from the average price over the long term.

To the Savings Plan Guide

Milestones & Halvings

Whitepaper Published

Satoshi Nakamoto describes "Bitcoin: A Peer-to-Peer Electronic Cash System," laying the foundation for a revolution.

Genesis Block

The first block is mined—the Bitcoin blockchain is born, starting an unstoppable chain.

"Pizza Day"

The first documented commercial transaction: 10,000 BTC for two pizzas. Today, a legendary holiday in the crypto world.

First Halving

The reward for miners is halved from 50 to 25 BTC per block. Digital scarcity becomes a reality for the first time.

Second Halving

The block reward drops further to 12.5 BTC. The price responds with a massive increase in the following months.

Taproot Upgrade

An important technical upgrade that improves privacy, efficiency, and smart contract capabilities on Bitcoin.

Fourth Halving

The block reward is reduced to 3.125 BTC. A crucial moment that further increases scarcity.

Common Myths About Bitcoin

There is a lot of misinformation out there. Here are the facts about the most common myths:

Myth: "Bitcoin is only for criminals."

Fact: The transparent blockchain makes Bitcoin unsuitable for illegal activities. Cash is far more anonymous. The vast majority of its use is legal.

Myth: "Bitcoin uses too much energy."

Fact: Energy consumption secures the network. A growing portion comes from renewable sources. Moreover, the energy consumption of the traditional financial system is much higher.

Debunk all myths